Chinese Engagement in Sub Saharan African Economies: A Case of Tanzanian Economy

This article investigates the impact of Chinese activities in sub-Saharan African countries with respect to the growth performance of economies in that region using Tanzania as a case study. To build their economies, these countries have turned to China for support over the past few decades as the conditions attached to accessing loans from the West have become increasingly unattractive. These inflows of FDIs from China, along with aid, grants, and trade agreements, have helped to open many African countries’ economies and propel infrastructure development, social impact programs, and a reduction in poverty. Yet, critics question China’s motives and point to the burden facing African countries that may struggle to repay the loans. Using a case study of Tanzania, this article finds that China’s FDI has generally contributed to improved living conditions of the people, but this progress is tempered by trade imbalances, mounting debt, and failure to produce projected job opportunities. For their part, the Chinese have benefited from access to the continent’s resources and new markets for their merchandise. The findings also suggest African countries continue their robust economic ties with China but reduce their dependence on China by exploring other partners and new ways to leverage Africa’s own resources to fund growth and development on the continent.